316.127 Income
of nonresident from Oregon sources.
(1) The adjusted gross income of a nonresident derived from sources within this
state is the sum of the following:
(a) The net
amount of items of income, gain, loss and deduction entering into the
nonresident’s federal adjusted gross income that are derived from or connected
with sources in this state including (A) any distributive share of partnership
income and deductions and (B) any share of estate or trust income and
deductions; and
(b) The portion
of the modifications, additions or subtractions to federal taxable income
provided in this chapter and other laws of this state that relate to adjusted
gross income derived from sources in this state for personal income tax
purposes, including any modifications attributable to the nonresident as a
partner.
(2) Items of
income, gain, loss and deduction derived from or connected with sources within
this state are those items attributable to:
(a) The ownership
or disposition of any interest in real or tangible personal property in this
state;
(b) A business,
trade, profession or occupation carried on in this state; and
(c) A taxable
lottery prize awarded by the Oregon State Lottery, including a taxable lottery
prize awarded by a multistate lottery association of which the Oregon State
Lottery is a member if the ticket upon which the prize is awarded was sold in
this state.
(3) Income from
intangible personal property, including annuities, dividends, interest and
gains from the disposition of intangible personal property, constitutes income
derived from sources within this state only to the extent that such income is
from property employed in a business, trade, profession or occupation carried
on in this state.
(4) Deductions
with respect to capital losses, net long-term capital gains, and net operating
losses shall be based solely on income, gains, losses and deductions derived
from or connected with sources in this state, under regulations to be
prescribed by the Department of Revenue, but otherwise shall be determined in
the same manner as the corresponding federal deductions.
(5)
Notwithstanding subsection (3) of this section:
(a) The income of
an S corporation for federal income tax purposes derived from or connected with
sources in this state constitutes income derived from sources within this state
for a nonresident individual who is a shareholder of the S corporation; and
(b) A net
operating loss of an S corporation derived from or connected with sources in
this state constitutes a loss or deduction connected with sources in this state
for a nonresident individual who is a shareholder of the S corporation.
(6) If a
business, trade, profession or occupation is carried on partly within and
partly without this state, the determination of net income derived from or
connected with sources within this state shall be made by apportionment and
allocation under ORS 314.605 to 314.675.
(7) Compensation
paid by the United States for service in the Armed Forces of the United States
performed by a nonresident does not constitute income derived from sources
within this state.
(8) Compensation
paid to a nonresident for services performed by the nonresident at a
hydroelectric facility does not constitute income derived from sources within
this state if the hydroelectric facility:
(a) Is owned by
the United States;
(b) Is located on
the Columbia River; and
(c) Contains
portions located within both this state and another state.
(9)(a) Retirement
income received by a nonresident does not constitute income derived from
sources within this state unless the individual is domiciled in this state.
(b) As used in
this section, “retirement income” means retirement income as that term is
defined in 4 U.S.C. 114, as amended and in effect for the tax period.
(10) Compensation
for the performance of duties described in this subsection that is paid to a
nonresident does not constitute income derived from sources within this state
if the individual:
(a) Is engaged on
a vessel to perform assigned duties in more than one state as a pilot licensed
under 46 U.S.C. 7101 or licensed or authorized under the laws of a state; or
(b) Performs
regularly assigned duties while engaged as a master, officer or member of a
crew on a vessel operating in the navigable waters of more than one state. [1969
c.493 §23; 1971 c.672 §2; 1973 c.269 §2; 1975 c.705 §4; 1983 c.684 §15a; 1989
c.625 §9; 1997 c.654 §6; 1997 c.839 §10; 1999 c.143 §4; 1999 c.556 §1; 1999
c.580 §7; 2001 c.77 §§1,4; 2001 c.114 §37; 2003 c.77 §24; 2014 c.114 §13]
Notes of Decisions
Cited in
49
cases (
5 in the last 5 years), 1971–2026 · leading case:
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015).
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015).
· cites it 4× “Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008).
· cites it 16× “The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005).
· cites it 6× “ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018).
· cites it 8× “124 and ORS 316.127. The relevant statutes for shareholders in 33 The conclusion the court draws as to UDITPA being a source of authority for combined reporting also answers the assertion by the department that some- how ORS 314.”
Etter v. Dep't of Revenue, 377 P.3d 561 (Or. 2016).
· cites it 2× “” 4 ORS 316.127 provides, in part: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: [[Image here]] “(b) A business, trade, profession or occupation carried on in this state [.”
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988).
· cites it 6× “3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Kulick v. Dep't of Revenue, 624 P.2d 93 (Or. 1981).
· cites it 2× “” 3 ORS 316.127: "(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: "(3) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal…”
Julian v. Dep't of Revenue, 17 Or. Tax 384 (Or. T.C. 2004).
· cites it 2× “As a nonresident earning income in Oregon, Julian was subject to Oregon income tax on income attributable to his work in Oregon pursuant to ORS 316.127. 2 Taxpayers claimed exemption pursuant to the Amtrak Act and the Department of Revenue (the department) subsequently issued a…”
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994).
· cites it 4× “ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021).
“, 19 OTR 524, 536-37 (2008) (in interpreting “business, trade, profession or occupation” for purposes of apportioning nonresident’s income from intangibles under ORS 316.127(3), court not required to follow federal meaning of “trade or business” as used to determine “taxable…”
Jonsson v. Dep't of Revenue, 4 Or. Tax 376 (Or. T.C. 1971).
· cites it 6× “117: “The taxable income of a nonresident individual is that part of his federal taxable income attributable to sources within this state determined by reference to ORS 316.127.” ORS 316.127: “ (1) The adjusted gross income of a nonresident derived from sources within this state…”
Zemke v. Dep't of Revenue, 17 Or. Tax 18 (Or. T.C. 2003).
· cites it 3× “037(3), and ORS 316.127. 2 As a corollary to the rules on taxation of income of nonresidents, ORS 316.”
— Or. Rev. Stat. § 316.127(1) — 5 cases
— Or. Rev. Stat. § 316.127(1)(a) — 6 cases
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988).
“3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
— Or. Rev. Stat. § 316.127(1)(b) — 1 case
— Or. Rev. Stat. § 316.127(10) — 3 cases
— Or. Rev. Stat. § 316.127(10)(b) — 1 case
— Or. Rev. Stat. § 316.127(2) — 3 cases
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988).
“3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994).
“ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
— Or. Rev. Stat. § 316.127(2)(a) — 2 cases
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008).
“The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
— Or. Rev. Stat. § 316.127(2)(b) — 5 cases
Etter v. Dep't of Revenue, 377 P.3d 561 (Or. 2016).
“” 4 ORS 316.127 provides, in part: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: [[Image here]] “(b) A business, trade, profession or occupation carried on in this state [.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005).
“ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008).
“The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
— Or. Rev. Stat. § 316.127(3) — 9 cases
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008).
“The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021).
“, 19 OTR 524, 536-37 (2008) (in interpreting “business, trade, profession or occupation” for purposes of apportioning nonresident’s income from intangibles under ORS 316.127(3), court not required to follow federal meaning of “trade or business” as used to determine “taxable…”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005).
“ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
Ballard v. Dep't of Revenue, 13 Or. Tax 201 (Or. T.C. 1994).
“ANALYSIS ORS 316.127 includes in a nonresident’s income items of income “derived from or connected with sources in this state.”
— Or. Rev. Stat. § 316.127(4) — 1 case
— Or. Rev. Stat. § 316.127(5) — 4 cases
Kulick v. Dep't of Revenue, 624 P.2d 93 (Or. 1981).
“” 3 ORS 316.127: "(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: "(3) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal…”
— Or. Rev. Stat. § 316.127(6) — 5 cases
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018).
“124 and ORS 316.127. The relevant statutes for shareholders in 33 The conclusion the court draws as to UDITPA being a source of authority for combined reporting also answers the assertion by the department that some- how ORS 314.”
Crystal Comm., Inc. v. Dept. of Rev., 19 Or. Tax 524 (Or. T.C. 2008).
“The two possible sources are federal income tax law or ORS 316.127 standing on its own. On this point, taxpayers first take the phrase "business or trade," as essentially found in ORS 316.”
— Or. Rev. Stat. § 316.127(7) — 1 case
— Or. Rev. Stat. § 316.127(8) — 2 cases
— Or. Rev. Stat. § 316.127(8)(a) — 1 case
— Or. Rev. Stat. § 316.127(9) — 3 cases
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015).
“Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
Dep't of Revenue v. Wheeler, 18 Or. Tax 129 (Or. T.C. 2005).
“ORS 316.127. Oregon source income is defined to include: “(2) Items of income, gain, loss and deduction derived from or connected with sources within this state are those items attributable to: ****** “(b) A business, trade, profession or occupation carried on in this state; and…”
— Or. Rev. Stat. § 316.127(9)(a) — 2 cases
Moro v. State of Oregon, 351 P.3d 1 (Or. 2015).
“Both 4 USC section 114 and ORS 316.127(9) apply to retirement income received after December 31, 1995.”
— Or. Rev. Stat. § 316.127(l)(a) — 1 case
Wood v. Dep't of Revenue, 749 P.2d 1169 (Or. 1988).
“3 ORS 316.127 (1981) provided in relevant part: “(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: “(a) The net income of items of income, gain, loss and deduction entering into his federal adjusted gross income…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.